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Hong Kong Stocks fall 0.6%

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Headline indices of the Hong Kong share market were lower on Monday, 08 October 2018, as risk aversion selloff triggered on tracking negative lead from Wall Street Friday after the U. S. non-farm payrolls report showed weaker than expected job growth in September, while the unemployment rate fell more than expected. Meanwhile, selloff pressure intensified on tracking selloff in Mainland A-Share market today as traders in returned to work after a weeklong holiday and on escalating trade dispute between world two biggest economies. However, market losses capped as participants sentiment perhaps bolstered a bit by the People's (PBOC) latest steps to pump more liquidity into the broader economy through cut in banks' reserve-requirement ratios. Around late afternoon trade, the fell 145.40 points or 0.55% to 26,427.17. The Enterprises Index dropped 42.44 points or 0.4% to 10,487.88.

The sub-index of the Hang Seng tracking the Commerce & Industry sector fell 1.3%, properties sector shed 0.5%, and financial sector fell 0.2%, while Utilities sector added 0.6%.

The People's (PBOC) moved on Sunday to support the economy by slashing the level of cash that must hold as reserves. It was the fourth cut this year and comes as the economy struggles with the drag from an escalating trade dispute with the Reserve requirement ratios (RRRs) - currently 15.5% for large commercial lenders and 13.5% for smaller - would be cut by 100 basis points effective Oct. 15, the PBOC said, matching a similar-sized move in April.

Shares in gaming companies declined after revised down its target prices for all gaming stocks. Galaxy Entertainment (0027) plunged 2.6% to HK$45.75 becoming the top blue-chip loser. (01928) fell 2.6% to HK$35.25.

Tech plays continued their decline in the wake of micro chip hacking reports. (02382) declined 4.6% to HK$78.15. (02018) softened 0.8% to HK$77.65. (01810) sank 3.9% to HK$13.75. (00992) slid 1.4% to HK$4.99.

OFFSHORE MARKET NEWS, US stock market closed down on Friday, as treasury yields extended a recent upward move following the release of the monthly jobs report, adding to recent concerns about the outlook for interest rates. The Dow Jones Industrial Average slid 180.43 points or 0.7% to 26,447.05, the Nasdaq tumbled 91.06 points or 1.2% to 7,788.45 and the fell 16.04 points or 0.6% to 2,885.57.

The major European markets ended down on Friday. The U. K.'s Index tumbled by 1.4%, while the German DAX Index and the French Index slumped by 1.1% and 1%, respectively.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 08 2018. 11:06 IST
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